Dynamic Pricing of Obsolete Mobile Phones for Online Recycling Platforms based on Optimal Control Theory

Abstract

Currently, the number of obsolete mobile phones are being generated in China. However, the obsolete mobile phones are not effectively recycled through online recycling platforms. According to consumers’ recycling willingness, this paper shows how the dynamic optimal control model was established. On the basis of this model, a pricing strategy was proposed, which set an optimal recycling price. The result shows that (1) the information leakage is the most crucial to pricing strategy; (2) consumers’ sensitivity to service level is the next. (3) environmental awareness will greatly promote consumers to recycle obsolete mobile phones voluntarily.